IN RE: M\/s Maheshwari Stone Supplying Co., Tandur, Vikarabad
GST
2018 (6) TMI 458 – AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA – 2018 (13) G. S. T. L. 345 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA – AAR
Dated:- 25-3-2018
A. R. Com\/3\/2017 – 2\/2018
GST
Sri J. Laxminarayana, Additional Commissioner (State Tax) And Sri V. Srinivas, IRS, Joint Commissioner (Central Tax)
\nORDER
\n1. M\/s. Maheshwari Stone Supplying Co., Tandur,(GSTIN No.36ABNPS1863M1ZX) has filed an application in Form GST ARA-01under Section 97(1) of TGST Act,2017 read with Rule 103 of CGST\/TGST Rules, 2017and sought advance ruling on the following issues:
\n(i) In which Chapter the commodity called “Polished\/Processed limestone slabs” falls?
\n(ii) Under which HSN Code the above commodity comes?
\n(iii) Can it be classified as “Mineral substances not elsewhere specified or included” which is mentioned under HSN Code 2530?
\n(iv) Can it be classified under any of the HSN Codes 25<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ial and their SSI unit do not do that process and sawn on blocks is mostly practiced in KOTA region of Rajasthan and also in Marble\/Granite Industry worldwide. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n a Stone slab cannot be equated to manufacturing, hence such stone slabs are not liable to Excise Duty (ED for short). Under VAT regime their “Polished limestone slabs” were charged 5% of Tax. Hence, when no ED was charged and VAT was only 5%, then their commodity shall definitely fall in Chapter 25 only, whose GST is also 5% for Limestone category it is also noteworthy for the competent authority to note that ROYALTY is a kind of Tax as decided by majority of Judges of SC so far and the matter is still sub-judice before a larger bench now. And their commodity in its raw form suffers additional juicy fiscal burden in the form of ROYALTY at the hands of Mining authorities of State Government. The process of expensive and luxurious category Marble\/Granite is very complex in comparison to their Polish slabs; to such an extent that processing expenses incurred only on SAWN process of Granite\/Marble is 2-4 times higher than the entire material cost of Processed Limestone slab itself of same <\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n g a more general description. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ars the marks of quarrying (blast holes, wedge marks, etc.). = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n rocessing unit and POLISHING one of the suitable surface with simple table polish machine and further cut it to square or rectangular shape on a table cutting machine. Since the stones which have undergone the process of polishing are not classifiable under chapter 25, we would like to draw our attention to the Explanatory notes to heading 68.02 which were reproduced below for ease of reference: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" IN RE: M\/s Maheshwari Stone Supplying Co., Tandur, VikarabadGST2018 (6) TMI 458 – AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA – 2018 (13) G. S. T. L. 345 (A. A. R. – GST)AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA – AARDated:- 25-3-2018A. R. Com\/3\/2017 – 2\/2018GSTSri J. Laxminarayana, Additional Commissioner (State Tax) And Sri V. Srinivas, IRS, … Continue reading “IN RE: M\/s Maheshwari Stone Supplying Co., Tandur, Vikarabad”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-12110","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/12110","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12110"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/12110\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12110"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12110"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12110"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nb) That surface POLISH is a process which is performed on directly brought rough stone SLABs (minor mineral) of uneven thickness and it is called BUTTERMILK like material which they usually undertake in their small scale industries. The expenses incurred on a swan TILE is higher than combined processes of POLISH & CUT done on a SLAB of same size. In economic terms also any of the two processes combined together cannot match a single process of SAWN which is allowed in written form under HSN Code 2516. Selling price wise and quality wise also there is a huge difference in these both varieties of stones and their cheap polish slabs are mostly used in low budget housing needs. These cheap quality Polish stones are also a last resort for a customer to select from.
\nc) Processed or Mirror Polished Marble\/Granite SLABs have also not <\/p>\n
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\n6. As the applicant has presented their case with an argument that “processed\/polished limestone slabs” are classifiable under chapter 25 of the GST tariff, we would like to draw attention to the Explanatory notes to the Harmonized Commodity Description and coding system:
\n * Section V of the HSN deals with classification of Mineral products and in Chapter 25 classification of Salt; sulphur; earths and Stone; plastering materials, lime and cement are dealt with.
\n * As per the chapter notes to chapter 25, the headings of this chapter covers mineral products only in the crude state. Minerals which have been otherwise processed (e.g., made up into articles by shaping, carving etc,) generally fall in latter chapters(for example, chapter 28 or 68).
\n7. The heading 25.15 covers Marble, Travertine, Ecaussine and other Calcareous Monumental or Building stone of an apparent specific gravity of 2.5 or more and Alabaster whether or not roughly trimmed or merely cut<\/p>\n
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\n * “Roughly trimmed” stone is stone which has been very crudely worked after quarrying, to form blocks or slabs, still having some rough, uneven surfaces. This working involves removing superfluous protuberances by means of hammer or chisel type tools.
\n * This subheading does not cover blocks or slabs which have been cut to a rectangular (including square) shape.
\n9. Similarly, the subheading explanatory notes for subheading 2515.12 are given below:
\n * To fall in this subheading, the blocks and slabs which have been merely cut by sawing must bear discernible traces of the sawing (by wire strand or other saws) on their surfaces.
\n10. The heading 25.16 covers Granite, Porphyry, Basalt, sandstone and other monumental or Building stones, whether or not roughly trimmed or merely cut, by sawing or otherwise into blocks or slabs………
\n * The stones of this heading may be shaped or proce<\/p>\n
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\n * This heading covers natural monumental or building stone (except slate) which has been worked beyond the stage of the normal quarry products of chapter 25.
\n * The heading therefore covers stone which has been further processed than mere shaping into blocks, sheets or slabs by splitting, roughly cutting or squaring by sawing(square or rectangular faces).
\n * The heading thus covers stone in the forms produced by the stone-mason, sculptor, etc., viz:
\n(A)………..
\n(B) Stone of any shape (including blocks, slabs or sheets), whether or not in the form of finished articles, which has been bo<\/p>\n
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